American Eagle Outfitters (AEO) has announced a second advertising campaign with actress Sydney Sweeney, sending its stock up 7% as a result.
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The clothing retailer announced that it is partnering with Sweeney for its summer season denim shorts collection that includes low-rise shorts and super low-rise micro “skorts.” The first series of advertisements with the actress used the tagline “Sydney Sweeney Has Great Jeans” and faced a social media backlash over claims it promoted eugenics.
American Eagle weathered the controversy and its stock rose 77% in 2025 on the back of the successful ad campaign. Now, the company is looking to replicate that success with a new summer advertising campaign featuring Sweeney, who stars in the hit TV show “Euphoria.”
The Power of Advertising
American Eagle also reported that its revenue rose 37% in the six months immediately after the first ad campaign featuring Sweeney was launched. Management said that all the attention from the ad campaign benefitted its financial results and share price.
The new ad campaign is called “Syd for Short: American Eagle Jean Shorts,” and it is the latest effort to boost demand for American Eagle’s denim products. The company continues to struggle to navigate tariff-related costs as most of its clothing is made overseas, notably in Asia.
Is AEO Stock a Buy?
American Eagle Outfitters’ stock has a consensus Hold rating among nine Wall Street analysts. That rating is based on one Buy, six Hold, and two Sell recommendations issued in the last three months. The average AEO price target of $24.14 implies 27% upside from current levels.
